Confidential Information © 2008 The Identity Circle. All rights Reserved The Identity Effect – Shape a better company and a better you by marshaling the 8 building blocks of leadership
Aug 20, 2015
Confidential Information © 2008 The Identity Circle.
All rights Reserved
The Identity Effect –
Shape a better company and a better you by marshaling the 8 building blocks of leadership
The story in brief
Confidential Information © 2008 The Identity Circle.
All rights Reserved
I The Logic
II The Roadmap
III The Science IV The Opportunity
I The Logic (is radical)
“Problems cannot be solved at the same level of awareness that created them.” Albert Einstein
5
The assumption
Humans and organizations are fundamentally different “beings” who have different needs that must be met in different ways in order for them to succeed.
The Logic (is radical)
Confidential Information © 2008 The Identity Circle.
All rights Reserved
6
A long and successful history of divide-and-conquer
• Frederick Taylor – the scientific method
• Time-managed, assembly line efficiency
• Henry Ford: “All I want is men’s hands”
The Logic (is radical)
Confidential Information © 2008 The Identity Circle.
All rights Reserved
7
The (radical) fact
When it comes to understandingthe deepest needs of organizationsand individuals, each is a mirror image of the other…
…exactly what is that need?
The Logic (is radical)
Confidential Information © 2008 The Identity Circle.
All rights Reserved
8
The need to create value and be rewarded for it
in return …
The Logic (is radical)
Confidential Information © 2008 The Identity Circle.
All rights Reserved
9
And what traits must both “beings” – the human being and the corporate being – possess in order to satisfy this essential need? …
The Logic (is radical)
Confidential Information © 2008 The Identity Circle.
All rights Reserved
10
8 Traits: The Building Blocks of Identity
• Autonomy
• Differentiation
• Change
• Stewardship
• Purpose
• Alignment
• Brand
• Sustainability
The Logic (is radical)
Confidential Information © 2008 The Identity Circle.
All rights Reserved
11
The source – The 8 Laws of Identity
The Law of Being (Autonomy)
The Law of Individuality (Differentiation)
The Law of Constancy (Change)
The Law of Will (Stewardship)
The Law of Possibility (Purpose)
The Law of Relationship (Alignment)
The Law of Comprehension (Brand)
The Law of the Cycle (Sustainability)
The Logic (is radical)
Confidential Information © 2008 The Identity Circle.
All rights Reserved
12
If organizations and individuals have the same fundamental need …
… then, they should be led in the same fundamental way.
The Logic (is radical)
Confidential Information © 2008 The Identity Circle.
All rights Reserved
13
And, so, why not?
• Unexamined assumptions
• Lack of framework
• Few tools
• Inability to measure
The Logic (is radical)
Confidential Information © 2008 The Identity Circle.
All rights Reserved
II The Roadmap (unfolds)
15
Dow’s growth challenge –1999 • $18 billion+ sales • For years, only GDP growth (3 – 4%)
The Roadmap (unfolds)
Confidential Information © 2008 The Identity Circle.
All rights Reserved
16
1. Autonomy The Law of Being One’s ability to live depends first upon defining one’s self as separate from all others. Self: Strip away the labels Organization: Forget the competition (for now)
The Roadmap (unfolds)
Confidential Information © 2008 The Identity Circle.
All rights Reserved
17
Autonomy for Dow… “Forget”… • BASF• DuPont• Rohm & Haas
The Roadmap (unfolds)
Confidential Information © 2008 The Identity Circle.
All rights Reserved
18
2. Differentiation The Law of Individuality One’s natural capacities invariably fuse into a discernible identity that makes one unique
Self: Unearth what you love Organization: Clarify unique capacities, not just strengths
The Roadmap (unfolds)
Confidential Information © 2008 The Identity Circle.
All rights Reserved
19
Differentiation for Dow…
• A genius for “life-changing” customer relationships
• A passion for scale
• A bias toward the essentials of life
• A talent for “whole system” thinking and action
• An obsession with improvement
The Roadmap (unfolds)
Confidential Information © 2008 The Identity Circle.
All rights Reserved
20
3. Change The Law of Constancy Identity is fixed, transcending time and place, while its manifestations are constantly changing. Self: Make the connections that explain past events and foreshadow your future Organization: Identify patterns of value creation over time
The Roadmap (unfolds)
Confidential Information © 2008 The Identity Circle.
All rights Reserved
21
Change for Dow…Dow has flirted with its societal impact since its inception:
Food Calcium sulfide (for fruit trees); agchem business, 1908Improved acetic anhydride yields Saran, 1928-45
Health and MedicineAcetylsalicylic acid (aspirin), 1916Nicorette developed (help quit smoking), 1983
Transportation Butadiene, isoprene (rubber substitutes – tires), 1914
NASA’s Apollo 8 protected during reentry by Dow epoxy resin heat shield, 1968
The Roadmap (unfolds)
Confidential Information © 2008 The Identity Circle.
All rights Reserved
22
4. Stewardship The Law of Will Every being is compelled to create value in accordance with their identity. Self: Commit to the path revealed in what you’velearned so far Organization: Trust your instincts; stay the course
The Roadmap (unfolds)
Confidential Information © 2008 The Identity Circle.
All rights Reserved
23
Stewardship for Dow… “We’re struggling to grow…
We need a north star – to know what we do beyond making resin pellets, styrene and the like. If we have an identity, we need to know what it is and what it may tell us about our future.”
- Bill Stavropoulos, former Dow CEO
The Roadmap (unfolds)
Confidential Information © 2008 The Identity Circle.
All rights Reserved
24
5. Purpose The Law of Possibility Identity foreshadows potential. Self: Follow the signs of joy.
Organization: Clarify your value-creating potential.
The Roadmap (unfolds)
Confidential Information © 2008 The Identity Circle.
All rights Reserved
25
Purpose for Dow…
To constantly improve what is essential to human progress by mastering science
and technology
The Roadmap (unfolds)
Confidential Information © 2008 The Identity Circle.
All rights Reserved
26
6. Alignment The Law of Relationship People and organizations are inherently relational, and those relationships are only as strong as the natural alignment between the identities of the participants. Self: Take stock of who matters and why Organization: Connect with people and companies who will want what you have to give
The Roadmap (unfolds)
Confidential Information © 2008 The Identity Circle.
All rights Reserved
The roadmap (unfolds)
Alignment for Dow
Employees (create value)
Customers (purchase value)
Investors(finance value)
Suppliers Communities
Government Unions
Direct
End users
Society
Analysts
Portfolio managers
Shareholders
28
7. Brand The Law of Comprehension One’s various capacities are only as valuable as the perceived value of the whole of that being. Self: Declare yourself on the strength of your gift Organization: “Go public”
The Roadmap (unfolds)
Confidential Information © 2008 The Identity Circle.
All rights Reserved
29
Brand for Dow…
The Roadmap (unfolds)
Confidential Information © 2008 The Identity Circle.
All rights Reserved
30
The Roadmap (unfolds)
Confidential Information © 2008 The Identity Circle.
All rights Reserved
Employees Chemicals, plastics and agricultural products are what we make, not who we are. Dow is a consumer essentials company.
31
8. Sustainability The Law of the Cycle Identity governs value, which produces wealth,which fuels identity. Self: Surrender to the pull of identity Organization: Make identity the cornerstone of leadership
The Roadmap (unfolds)
Confidential Information © 2008 The Identity Circle.
All rights Reserved
32
The roadmap (unfolds)
Confidential Information © 2008 The Identity Circle.
All rights Reserved
Sustainability for Dow
“Sustainability requires making every decision with the future in mind. It is our relationship with the world around us - creating economic prosperity and social value, while contributing to the preservation of our planet.”
33
Dow …
1999 • $18+ billion sales • For years, only GDP growth (3 – 4%)
2009 • $50+ billion sales • Since1999: 13% annual growth rate
The Roadmap (unfolds)
Confidential Information © 2008 The Identity Circle.
All rights Reserved
III The Science (emerges)
35
The Identity Impact Survey (Summer 2009)
• One-year effort
• 1,941 respondents
• 5 companies (21 candidates)
$50MM to $8 billionGlobal and domesticPublic and privateB2B and consumer
• Sophisticated psychometrics
The Science (emerges)
Confidential Information © 2008 The Identity Circle.
All rights Reserved
36
The main finding:
‘Identity strength’ is a leading indicator of business performance…
The Science (emerges)
Confidential Information © 2008 The Identity Circle.
All rights Reserved
37
(IIS + OIS)> EE = VC
The Science (emerges)
Confidential Information © 2008 The Identity Circle.
All rights Reserved
Individual Identity Strength (IIS) has a powerful, positive effect on employee engagement (r = .500)
The impact of Organizational Identity Strength (OIS) on engagement is even greater (r = .666)
Together, IIS and OIS have a major impact on employee engagement (r = .686)
Where does identity strength come from?
What’s the payoff?
In sum, identity strength reveals a company’s current value-creating capacity …
…Which has vital business implications
Constrained value creation
•Handcuffed performance•Inefficient strategy deployment•Limited innovation •Overpromise, under-deliver on brand•Low-traction culture•Lower investment value
High value creation
•Superior performance•Effective strategy deployment•Efficient innovation•Strong brand•Strong culture•High investment value
Low value creation
•Sub-par performance•Ineffective strategy deployment•Depleted innovation•No meaningful brand•Dysfunctional culture•Low investment value
Pent-up value creation
•Limited performance•Inefficient strategy deployment •Limited innovation•Brand confusion•Diffuse culture•Lower investment value
45
The science (emerges)
Confidential Information © 2008 The Identity Circle.
All rights Reserved
What is “Identity-based management?”
A comprehensive system for aligning the interests andactions of organizations and individuals around value creation
IV The Opportunity (is now)
47
…To create fundamentally healthier, higher-performing organizations, based upon their value-creating potential
• Authenticity
• Integrity
• Resilience
• Efficiency
• Endurance
The Opportunity (is now)
Confidential Information © 2008 The Identity Circle.
All rights Reserved
48
Seven attributes of the identity-based organization:
• Value creation is the common cause
• Business results are measured in relation to identity strength
• Identity influences strategy, including M&A
• Identity informs culture and talent management
• identity shapes brand
• identity disciplines innovation
• Identity strength indicates investment value
The Opportunity (is now)
Confidential Information © 2008 The Identity Circle.
All rights Reserved
49
What about “change?” The identity-based organization: • Tolerates change
• Grows through change
• Fosters change
The Opportunity (is now)
Confidential Information © 2008 The Identity Circle.
All rights Reserved
50
New logic, new order…
The economic universe + The identity universe =
The Opportunity (is now)
Confidential Information © 2008 The Identity Circle.
All rights Reserved
2.50
2.70
2.90
3.10
3.30
3.50
3.70
3.90
Law 1 Law 2 Law 3 Law 4 Law 5 Law 6 Law 7 Law 8
Company Ratings for Each Law
All
A
EH
B
C
D
(Being)Autonomy
(Individuality)Differentiation
(Constancy)Change
(Will)Stewardship
(Possibility)Purpose
(Relationships)Alignment
(Comprehension)Brand
(Cycle)Sustainability
51
W = VCi
W = Wealth VC = Value Creation
i = Identity
The Opportunity (is now)
Confidential Information © 2008 The Identity Circle.
All rights Reserved
Thank you!
www.theidentitycircle.com
53
Identity, the human phenomenon
The Science (emerges)
Confidential Information © 2008 The Identity Circle.
All rights Reserved
54
Identity, the organizational phenomenon
The science (emerges)
Confidential Information © 2008 The Identity Circle.
All rights Reserved
The Logic (is radical)
55
Does this “logic” make sense?
Confidential Information © 2008 The Identity Circle.
All rights Reserved
And the effects of identity strength can be exponential.
The Science (emerges)
57
What are the possibilities the “science of identity” holds?
Confidential Information © 2008 The Identity Circle.
All rights Reserved
The Roadmap (unfolds)
58
Where does this identity “roadmap” lead?
Confidential Information © 2008 The Identity Circle.
All rights Reserved
59
What are the rewards – and the risks – associated with this opportunity?
The Opportunity (is now)
Confidential Information © 2008 The Identity Circle.
All rights Reserved
60
“Value”… The proprietary contribution one is capable of making: • In the marketplace
• In the world
The Logic (is radical)
Confidential Information © 2008 The Identity Circle.
All rights Reserved
61
• Status quo (assumptions)
• Awareness
• Framework
• Tools
• Metrics
The Logic (is radical)
Confidential Information © 2008 The Identity Circle.
All rights Reserved